Asia stocks mostly down

Asian shares were mostly lower as debt worries in the United States and Europe kept a shadow over global markets.

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Asian shares were mostly lower Tuesday as debt worries in the United States and Europe kept a shadow over global markets.

Japan's Nikkei 225 stock average, Asia's biggest bourse, declined 70.89, or 0.7 percent, to 9,903.58 after being closed for a national holiday Monday.

Hong Kong's Hang Seng fell 73.47, or 0.3 percent to 21,731.20 and mainland China's Shanghai Composite Index declined 0.4 percent to 2,804.18.

South Korea's benchmark Kospi, however, rose marginally to 2,131.28, while shares in Singapore gained 0.2 percent to 3,083.61.

The weak performance Tuesday comes amid concern that Europe's debt crisis could engulf larger economies and worries that the U.S. might not raise its debt ceiling by an Aug. 2 deadline.

In New York on Monday, the Dow Jones industrial average fell 94.57 points, 0.8 percent, to 12,385.16. Broader indexes also declined. The S&P 500 index dropped 10.70 points, or 0.8 percent, to 1,305.44, while the Nasdaq lost 24.69 points, or 0.9 percent, to 2,765.11.

In Europe, investors fret that debt problems in smaller economies such as Greece will spread to larger ones such as Italy and Spain. Adding to pessimism, were the results of so-called stress tests on European banks released last week. Eight institutions failed the test aimed at measuring how well they would withstand further financial strain.

The U.S. debt limit debate remains unresolved with the deadline now two weeks away. The Treasury Department says the limit must be raised by Aug. 2 or the government risks defaulting on its debt, though considering the need for legislation to enable a move an actual deal has to be crafted sooner.

In currencies, the dollar was little changed from late in New York Monday at 79.05 yen. The euro rose to $1.4127 from $1.4090.

Oil prices crept higher to above $96 a barrel amid expectations U.S. crude supplies dropped last week.

Benchmark oil for August delivery was up 28 cents to $96.21 a barrel in electronic trading on the New York Mercantile Exchange. Crude gave up $1.31 to settle at $95.93 on Monday. - Sapa-AP

Source: http://www.iol.co.za/asia-stocks-mostly-down-1.1101533

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